Ahlstrom's comparative IFRS information for 2004

Ahlstrom started to apply the International Financial Reporting Standards (IFRS) in its financial reporting as of January 1, 2005. Previously, Ahlstrom's financial reporting was based on the Finnish Accounting Standards (FAS). The interim reports in 2005 will be prepared in accordance with IFRS.

The following comparative IFRS figures are published in order to provide information on the effects of the transition on the consolidated balance sheets and income statements. January 1, 2004 is used as the transition date to IFRS.

For Ahlstrom, the most significant effects of the transition to IFRS relate to the impairment of assets, the treatment of pension liabilities and goodwill, and the ensuing tax effects. The other changes mainly relate to the recording and reporting of provisions and financial leases. The transition to IFRS does not affect the Group's cash flow.

As a result of the transition to the IFRS, the company's balance sheet and equity decrease and the gearing ratio will be slightly weakened. The transition has a positive effect on the Group's profitability due to the abolition of goodwill amortization.

2004

2004

EUR million

IFRS

FAS

Net sales

1,568

1,568

Operating profit

63.7

51.0

Net profit

34.3

17.5

Earnings per share, EUR

0.94

0.48

Cash earnings per share, EUR

3.52

3.52

Equity

588

633

Interest-bearing net debt

359

342

Balance sheet total

1,383

1,400

Capital employed

983

1,009

Return on capital employed, %

7.2

5.3

Return on equity, %

5.8

2.7

Gearing ratio, %

61.1

53.9

The following attachment presents comparative IFRS information in detail with explanatory notes for the whole year and interim periods of 2004. The main changes to earlier accounting principles and their effect on presented numbers are also included.